Following a good set of 3Q19 results from CSE Global, analysts have updated their reports, as follows: 



2019 Forecast Revenue

2019 Forecast Net Profit

Target stock price


Ling Lee Keng

$429 m

$22.5 m

69 c


Joohijit Kaur & John Cheong

$424.3 m

$22.0 m

70 c


Cezzanne See

$407 m

$22.52 m

73 c


Joel Ng

 $420.6 m

 $21.4 m

61 c 

In 2018, CSE achieved $377 m in revenue and $20.1 m in net profit attributable to shareholders.

LimBoonKheng1119MD Lim Boon Kheng at the 3Q19 results briefing last week. Photo by Ngo Yit Sung.

Excerpts from DBS Research report

Analyst: LING Lee Keng

New order intake picking up
Higher order book to drive earnings for FY20F and beyond. New order intake almost doubled y-o-y, more than we anticipated, on the back of an increase in oil production in Americas.


Share price: 
52 c

69 c

Excluding newly acquired Volta’s contribution, we estimate that CSE’s new order book in 3Q19 grew by c.40% yo-y and c.5% q-o-q.

With its increase in oil & gas projects, and large contract win announced recently, we anticipate this to contribute positively to CSE’s earnings in FY20F and beyond.

We project FY19F-21F earnings CAGR of 21% for CSE, driven by the expected increase in capex of oil majors, and riding on the smart nation initiatives in Singapore and increasing infrastructure projects in Australia.

About 90% of CSE’s total revenue is generally recurring in nature. This stable stream of revenue, coupled with its high customer retention rate and strong operating cashflows, should support a consistent DPS of c.2.75 Scts p.a., or an attractive yield of c.5%.

Where we differ: We are more optimistic on the outlook for CSE, on the back of higher new order wins driven by continued increase oil production in the US.

Potential catalysts: 1) Large contract wins, 2) Rising oil prices

Maintain BUY with a higher TP of S$0.69

Our TP is raised to S$0.69 from S$0.65 on the back of higher new order intakes.

Our TP is pegged to 5-year average PE of 12x on FY20F earnings.

Key Risks to Our View:
Steep drop in oil prices, global macroeconomic slowdown, lack of new order wins.

Full report here

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